The Dow Jones Industrial Average Is Flat as U.S.-China Trade Talks Quiet Down

Garrett Baldwin

The Dow Jones Industrial Average is flat today as the market waits for new trade developments between China and the U.S.

We're also about to enter a busy earnings week for the retail sector. The Dow has experienced a strong, four-week winning streak as optimism increases around global trade and economic growth. Here's why the streak may continue in the days to come.

But first, the numbers from Friday for the Dow, S&P 500, and Nasdaq:

Now, here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.

The Top Stock Market Stories for Monday

• It could be a quiet day with investors eyeing retail earnings reports later this week. The Dow is above 28,000 at record territory. This week, we could see further gains as we take in earnings reports from Home Depot Inc. (NYSE: HD) and its rival, Lowe's Cos. Inc. (NYSE: LOW). Wall Street analysts project that both companies will report strong earnings ahead of the holiday shopping season. The sluggish housing market has driven more homeowners to renovate their properties instead of upgrading to a new home. That said, the ongoing trade battle between the United States and China will influence results. Pay close attention to Target Corp. (NYSE: TGT) as well.

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• In positive news for the U.S. economy, investors are cheering a report from Morgan Stanley (NYSE: MS). The Wall Street titan said that global economic growth will increase in 2020. The bank expects global GDP to increase by 3.2%, up from 3% this year. The bank cites ongoing efforts by central banks to ease monetary policy and the alleviation of trade tensions as the primary catalysts.
• Over the weekend, Saudi Arabia announced the terms of the Saudi Aramco IPO. The kingdom has valued the company at $1.7 trillion. It plans to float 1.5% of the company, or roughly 3 billion shares. The IPO is set for next month and should easily top the record $25 billion raised in the 2014 float by Alibaba Group Holding Ltd. (NYSE: BABA). The IPO is part of the nation's larger plans to diversify its economy away from oil revenue. In its filing documents, the company listed terrorism, climate change, and Asian demand for oil and gas as primary risk concerns.

Stocks to Watch Today: HP, XRX, TWTR, GOOGL, MSFT, SNE

• HP Inc. (NYSE: HP) will not accept a takeover bid from Xerox Holdings Corp. (NYSE: XRX). The $22-per-share bid consisted of 77% cash and 23% stock. HP's board of directors rejected the bid in a letter to the CEO of Xerox. In the letter, the tech firm raised concerns about the impact of "outsized debt levels on the combined company's stock." The news comes just weeks after HP announced plans to slash up to 9,000 jobs by the end of fiscal year 2022.
• Twitter Inc. (NYSE: TWTR) announced that it has tightened political advertising rules ahead of the 2020 election. Its political ban includes any ads that reference political candidates or legislation. The company will prohibit ads that advocate for the outcome of political causes or social issues. Social media companies have faced a number of pressures ahead of the election due to concerns about false or misleading ads, or foreign influence on the election.
• Alphabet Inc. (NASDAQ: GOOGL) is generating buzz this week as it prepares to launch its new Stadia gaming services. The new service aims to capitalize on Google's booming cloud-computing technology and expanding global data business. The new service does not require gamers to own a hard copy of a game or a video game console. The new service will only feature about 12 games on the platform; however, the portfolio of offerings should expand in time as it takes on industry rivals like Microsoft Corp. (NASDAQ: MSFT) and Sony Corp. (NYSE: SNE).
• Look for additional earnings reports from Ashland Global Holdings Inc. (NYSE: ASH), Woodward Inc. (NYSE: WWD), Approach Resources Inc. (NASDAQ: AREX), and America's Car-Mart Inc. (NASDAQ: CRMT).

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Garrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.

Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.

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